5. All of the terms and provisions of the Lease are hereby incorporated by reference in the Lease Supplement to the same extent as if fully set forth herein.



6. This Lease Supplement may be executed in any number of counterparts, each of which counterparts, except as provided in Section 20(e) of the Lease, shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same Lease Supplement.



 


[Remainder of Page Intentionally Left Blank.]



 


 **IN WITNESS WHEREOF**, Lessor and Lessee have caused this Lease Supplement to be duly executed as of the day and year first above written.



 


 **LESSOR:**

**PEGASUS AVIATION II, INC.** 


 By:  



 Name:  



 Title:  



 


 


 **LESSEE:**

**VANGUARD AIRLINES, INC.** 


 


 By:  



 Name:  



 Title:  



 


 


**EXHIBIT E



DELIVERY AND OTHER REQUIREMENTS** 


On delivery, the Aircraft shall:



1) GENERAL CONDITION:






 a. Be clean by airline standards, with a current Certificate of Airworthiness from the FAA, as applicable, fit for flight with all systems operational, according to their intended use, and having been maintained in compliance with the previous lessee's maintenance program.



 b. Have installed the full complement of Engines and other equipment, parts, components, accessories and loose equipment as is normally required in operation of such Aircraft as would remain installed on the Aircraft were the Aircraft to continue operating in continued regular service with each such item functioning in accordance with its intended use.